In the aftermath of the Pandemic, retail businesses, like other businesses, have had to navigate through many changes. Some of these changes were driven long before the pandemic, by market forces and shifts in consumer behaviour. One of the most visible shifts happened in the area of in-store communications as retailers sought to change the way they engaged with their shoppers. This meant moving from print as a medium for in-store communications, to dynamic, digital screens, especially for smaller stores and exclusive
EBOs. Much of these was also driven by the rising need to optimise space and costs and drive profitability. But it hasn’t been a smooth, easy or obvious transition. While printing carries with it its own baggage of challenges, digital comes with its set of difficulties too for retailers and brands, in terms of execution. And the question remains – Is print really giving way to digital? Retail4Growth had recently reached out to VM Heads across brands to get their take. Multiple perspectives emerged which in fact point to the bigger question of whether there is a need to redefine the entire role of VM itself in the overall scheme of things. But first let’s take a comparative look at both print and digital as mediums for in store communications.

One of the most obvious advantages with digital is the flexibility and ease that it offers in terms of managing campaigns and communications. As Shradha Kurup, Head - Group Visual Merchandising & Retail Marketing at Raymond Limited, said, “The shift towards digital is aided by the fact that it is more cost efficient and easier to manage.”

Digital also enables interactivity and more exciting engagements with customers, an obvious advantage at a time when customer attention is the most prized outcome for a brand and dynamic rules over static. It is thus not surprising that many brands and retailers are choosing print over digital for their communications and campaigns in the stores. As Hari Krishnan, GM/Head of VM at AZORTE, a brand that has gone heavily into digital, and Akash Kumar, Head – VM and Marketing Services at Lifestyle International (Landmark Group), both pointed out, the share of print in in-store graphics and communication has been steadily coming down. While the estimates vary - 50%-60% in the last 10 years or about 20% in the past 2 years- most do agree that the share of print has certainly come down.

Challenges in the print eco system

But the shift away from print is also triggered by some of the challenges in the print eco-system and not necessarily by just the emergence of digital as a preferred medium. As Shradha said, “We have a network of almost 1500 stores across the country, and many of these are in smaller metros and smaller towns. So, maintaining consistency in print quality across all these stores can be challenging. If we decide to change the media and materials, then the vendor should be able to deliver that anywhere. But that is often not the case and this results in inconsistency.” This was a view echoed by almost all other VMs.

To sum up the most common challenges when it comes to printing:

• Quality monitoring and consistency of execution: For large retailers it is practically impossible to assess and monitor vendor print across different locations. While most big brands have a centralised print vendor base and also a set of criteria for evaluating print vendors, it is still challenging to evaluate and onboard new ones, especially given that vendors are not always transparent about their capability. For example, it is not uncommon for vendors to show a particular machine/ facility initially, and later outsourcing the work to a smaller vendor with inadequate facility and thus resulting in inferior quality print output.
• Sustainability: For most retailers/brands, sustainability is a ‘good to have’, and not necessarily a ‘must-have’ factor, mainly because of cost viability. For those who are particular about sustainable practices, there is also the issue of availability of sustainable media/technology or printing partners who follow end to end sustainable practices, as and when they need them. The other challenge is lack of enough awareness on sustainable practices, or the environmental impact of unsustainable printing processes, when it comes to printing.
• Engagement & Knowledge sharing: Many brands also find that vendors are often not cued into emerging needs or trends, whether in terms of using new media, choosing a more sustainable option or any other. Added to this is the absence of adequate engagement between retailers and their vendor partners resulting in communication gaps.
• Pricing: While price is among the top criteria for most retailers, lack of standardization in pricing is a common grouse. Of particular concern is the entry of newer players with lowered pricing and a corresponding reduction in quality bar.

Is digital the solution?

So the question remains, are these challenges driving the push towards digital? Well, it’s not as simple as it would seem, and it would take a while before digital actually replaces print as a medium for in store communications, as most VMs point out. After all, digital comes with its own set of challenges. As, Akash Ashesh – GM, National Head- VM, ABFRL, pointed out, “Yes there is a shift towards digital, but it’s mostly among certain categories like jewellery, for example. For retailers with a large network of stores, digital also means higher cost, not only in terms of capex, but also maintenance and other factors.”

Akash Kumar of Lifestyle agreed, “Adoption of digital is going slow because the cost is still quite high. LED panels are quite expensive; they get outdated every 3-4 years and servicing can be a challenge, whereas print stays for 3-6 months. Also digital is not just about putting up screens, it is also about the right content, hardware, software, it’s actually a lot of work.”

Also, as he pointed out, “Right now there are very few integrators, who can put it all together for a client. Each of them comes with their own specialty and it’s also more cost-effective to go to them separately currently.”

Avanish Saroj, Head - VM, Hamleys, echoed a similar sentiment, “There is a shift towards digital, but it will take time, as the costing does not always work out. What’s more common are digital standees, digital pillars etc.”

It would thus appear that both print and digital will continue to co-exist, the usage of each depending on the brand’s need and store format/size. But much of the debate around print versus digital also points to the question of whether the role of VM itself needs to be redefined. As Diptendu Shekhar Saha, Head - Visual Merchandising & Retail Experience at Trent Ltd, said, “The choice of in-store communication depends on whether it’s being driven by store design or business, and this in turn depends on the brand and the category. For example, in the food category, screens are part of the business need, whereas for a fashion brand, the choice of medium – whether it is digital, printed canvases, regular printed Vinyls, or any other - is part of the whole store design objective. But the more important point to note is that it’s time we started looking at VM as something beyond merchandising and communications, and instead looked at it as part of the overall aesthetic experience and brand identity.”

Akash Ashesh – GM, National Head- VM, ABFRL, summed up on a similar note, “The dynamics and way of working are all shifting. For example, there is a change in the way EBO’s look at the frequency of change when it comes to their store communications. Also factors like sustainability, profitability and customer experience are all gaining more traction. So even when it comes to digitization, it is more about leveraging experiential technologies that can yield immediate returns, rather than just putting up dynamic screens.”

It would thus appear that the more critical question today is about the whole role of VM and the need for a more comprehensive VM strategy – one that helps sell, engage, interact and is in tandem with the overall brand value and ethos.